Texas Farmout - Horizontal Wells

State:
Multi-State
Control #:
US-OG-704
Format:
Word; 
Rich Text
Instant download

Description

Should any Party elect not to participate in any Horizontal Exploratory Well, other than the Initial Well proposed under the terms of the Agreement, the non-participating Party agrees to farmout to the participating Parties its interest.

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FAQ

Under Statewide Rule 38, the drilling unit size for wells subject to state- wide rules is 40 acres, though special field rules may set different density requirements.

Horizontal wells are used in situations where the reservoir is abnormally shaped, or excavation is impossible. Horizontal drilling is preferred over vertical drilling due to its ability to access subsurface reservoirs that are not accessible from directly above.

Rule 36 is designed for the protection of the general public from the hazards of hydrogen sulfide gas in oil and gas operations and does not pertain to industrial safety as such.

A horizontal well is a type of directional drilling technique where an oil or gas well is dug at an angle of at least eighty degrees to a vertical wellbore.

The first recorded true horizontal oil well, drilled near Texon, Texas, was completed in 1929.

?Lease line? spacing under Statewide Rule 37 prohibits the location of a well nearer than 467 feet from ?any property line, lease line or subdivision line.?2 ?Between- well? spacing under Rule 37 prohibits location of a well nearer than 1,200 feet from ?any well completed in or drilling to the same horizon on the same ...

AUSTIN ? The Railroad Commission of Texas issued a total of 963 original drilling permits in May 2022 compared to 631 in May 2021. The May 2022 total includes 849 permits to drill new oil or gas wells, nine to re-enter plugged wellbores and 93 for re-completions of existing wellbores.

Statewide Rule 81 - The Railroad Commission regulates brine mining injection wells following the approval of the brine mining program by the EPA on February 16, 2004. New brine mining injections wells will be considered for injection permits under Rule 81.

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Texas Farmout - Horizontal Wells